[ “I want to break free
I want to break free
I want to break free from your lies
You’re so self satisfied I don’t need you
I’ve got to break free
God knows, God knows I want to break free” – Queen].
How does one stay invested in the markets…
…despite all its deceptions and mind-games?
As indices creep up and up, our minds start playing tricks on us.
We seek excuses to cash out.
And, mostly, we…
We don’t want to be done.
There might come a day, when we wish we hadn’t cashed out.
Markets can stay overbought for ages.
We don’t know.
No one knows.
Appreciation that counts sets in upon staying invested for the long-term.
How does one resolve this…
…conflict of mind versus reality?
Free up whatever has gone in.
Cash out the principal.
Leave the profit in the market.
This profit has cost no money.
Leaving it on the table is not a biggie.
Or is it?
Those, for whom it isn’t, will benefit properly from compounding.
Now, what’s the danger?
What’s on the table hasn’t cost you, so no danger.
Still, what would one fear?
No fear. What’s in is free, so no fear.
Let me paraphrase.
What’s the worst-case scenario from here?
Well, U-turn, and a big-time correction.
Use the correction to buy low, with the idea of freeing up more and more underlying(s) upon the high.
This way, size of one’s freed-up corpus keeps growing, and so does one’s exposure to compounding.
Wishing all very lucrative investing! 🙂